The Economics Of Franchising
by Roger D. Blair /
2005 / English / PDF
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This book describes in much detail both how and why franchising
works. It also analyses the economic tensions that contribute to
conflict in the franchisor-frnachisee relationship. The treatment
includes a great deal of empirical evidence on franchising, its
importance in various segments of the economy, the terms of
franchise contracts, and what we know about how all these have
evolved over time, especially in the U.S. market. A good many myths
are dispelled in the process. The economic analysis of the
franchisor-franchisee relationship begins with the observation that
for franchisors, franchising is a contractual alternative to
vertical integration. Subsequently, the tensions that arise between
a franchisor and its franchisees, who in fact are owners of
independent businesses, are examined in turn. In particular the
authors discuss issues related to product quality control, tying
arrangements, pricing, location and territories, advertising, and
termination and renewals.
This book describes in much detail both how and why franchising
works. It also analyses the economic tensions that contribute to
conflict in the franchisor-frnachisee relationship. The treatment
includes a great deal of empirical evidence on franchising, its
importance in various segments of the economy, the terms of
franchise contracts, and what we know about how all these have
evolved over time, especially in the U.S. market. A good many myths
are dispelled in the process. The economic analysis of the
franchisor-franchisee relationship begins with the observation that
for franchisors, franchising is a contractual alternative to
vertical integration. Subsequently, the tensions that arise between
a franchisor and its franchisees, who in fact are owners of
independent businesses, are examined in turn. In particular the
authors discuss issues related to product quality control, tying
arrangements, pricing, location and territories, advertising, and
termination and renewals.